Clothing Manufacturer for Icelandic Brands

Duty, VSK and origin for imports into Iceland

Last verified: 21 September 2026, against the official sources listed under Sources below.

Iceland sets its own tariff, so the EU's Everything But Arms scheme does not apply. It does not need to: Iceland Revenue and Customs publishes the customs tariff, and in the edition we read, the 2022 English text, the headings for knitted apparel in Chapter 61 carry 0 in Column A, the general rate that applies to all imported goods unless Column E's European Economic Area provisions apply. The US International Trade Administration's country guide, dated 1 April 2026, states the same thing in words: Iceland eliminated tariffs on consumer goods including clothing in 2016 and 2017.

The tax is VSK. Iceland Revenue and Customs states that the standard rate of VAT in Iceland is 24%, with a reduced rate of 11%, and that the importation of goods is taxable with VAT payable at the time of importation by the owner of the goods. On 500 tees at a US$6.00 customs value, US$3,000 in total, that is roughly US$720, inside our DDP price and recoverable by a registered importer in the normal way.

One consequence worth stating plainly: because the Icelandic rate for these goods is a general rate and not a preference, Bangladesh's LDC graduation in November 2026 does not threaten it. That is not true of any EU market, where the zero rate rests on Everything But Arms. Confirm your commodity code and the current figures with your broker before pricing a range, since the tariff edition we read is dated 2022.

Compliance and labelling for the Icelandic market

Last verified: 21 September 2026, against the official sources listed under Sources below.

Iceland is in the European Economic Area, so much of the EU product law you would meet elsewhere applies here through the EEA Agreement. Regulation (EU) No 1007/2011 on textile fibre names was incorporated by Joint Committee Decision 158/2012 and has applied to the EEA EFTA states since 1 May 2013, so fibre composition is declared the same way: every fibre by generic name and percentage in descending order on a durable, legible label.

On language, practice in Iceland is Icelandic, English or another Nordic language depending on the product category, and the requirement is set nationally rather than by the fibre regulation. Confirm with your retailer and with Neytendastofa, the consumer agency, what your category needs; we sew whatever combination you specify, and an Icelandic and English label is the safe default for a range that also sells to visitors.

For product safety we build the same technical file we build for EU customers: a risk assessment, the manufacturer's identification and contact details, and traceability, with GOTS certificate RSC 9687 behind the fibre and chemistry evidence and REACH-aligned restrictions on azo dyes in the fabrics we buy. Whether the EU's General Product Safety Regulation itself applies in Iceland is a question for your own adviser, because EEA incorporation of newer acts is decided act by act, and we would rather say that than assert it.

Shipping, Incoterms and time zones

We quote DDP, delivered duty paid, to an address in Iceland: freight, the transshipment, the customs entry, the VSK and delivery inside one landed price, with the commercial invoice, packing list and statement on origin sent to you before the goods move. There is no direct service from Chattogram, so the goods transship at a northern European hub, usually Rotterdam or Hamburg, onto a service into Sundahöfn in Reykjavík; Keflavík handles air freight in days. We confirm the transit with the quote.

Bangladesh Standard Time is UTC+6 with no daylight saving and Iceland keeps UTC all year, so we are six hours ahead of Reykjavík. Our floor works Sunday to Thursday, 09:00 to 18:00, which puts our afternoon in your morning, and our Amsterdam office covers European hours for design conversations, samples and paperwork, in English.

Why LDC graduation does not change your position

Last verified: 21 September 2026, against the official sources listed under Sources below.

Every other European market on this site gets its zero duty from a preference. The EU's Everything But Arms scheme gives Bangladesh duty-free access, and Regulation (EU) 2026/1395 keeps it for three years after graduation, which the UN currently has scheduled for 24 November 2026 with an extension requested and no General Assembly decision published when we checked (UN LDC portal).

Iceland is different. The zero in Column A of its tariff is the general rate for knitted apparel from anywhere, so nothing about Bangladesh's status changes it. What that means practically is that an Icelandic brand can plan a multi-year range without the duty question hanging over it. The graduation guide sets out the scenarios for the markets where it does matter.